CONNECTING WITH THE EMERGING LITHIUM OPPORTUNITY - CORPORATE PRESENTATION | JULY 2019 - Kodal Minerals
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CONNECTING WITH
THE EMERGING LITHIUM
OPPORTUNITY
July 2019
CORPORATE PRESENTATION | JULY 2019 0
1 IMPORTANT NOTICE
DISCLAIMER
The information contained in this document (“Presentation”) has been prepared by Kodal Minerals plc (the “Company”). While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers,
agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any
other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its
shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the
Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation.
Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction. In no circumstances will the Company be responsible for any costs, losses or expenses incurred
in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to
correct any inaccuracies in, or omissions from, this Presentation which may become apparent.
This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation to subscribe for or
purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Each recipient of this Presentation must make its own independent assessment of the Company after making such
investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy
itself in relation to such matters.
Forward Looking Statements
This Presentation contains “forward looking information” which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of metals, the estimation of
ore reserves and resources, the conversion of estimated resources into reserves, the realisation of ore reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of
the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the
timing and possible outcome of pending litigation and regulatory matters.
Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance
or achievements expressed or implied by the forward looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation
activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; the future costs of capital to the Company; possible variations of ore grade or recovery rates; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, terrorist attacks, insurrection or war; delays in obtaining future governmental approvals or financing or in the completion of development or
construction activities.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ
from those anticipated, estimated or intended. Forward looking statements contained herein are made as of the date of this Presentation and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information,
future events or results or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward looking statements.
Market and Industry Data
This Presentation also contains or references certain market, industry and peer group data which is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although the
Company believes these sources to be generally reliable, such information is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and
other inherent limitations and uncertainties. The Company has not independently verified any of the data from third party sources referred to in this Presentation and accordingly, the accuracy and completeness of such data is not guaranteed.
Qualified Person Statement
The exploration results and activity reported in this Presentation have been reviewed by Mr Bernard Aylward who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Aylward has sufficient experience that is relevant to the style of mineralisation
and type of deposit under consideration and to the activity being undertaken to qualify as a Qualified Person as defined in the AIM Note for Mining and Oil & Gas Companies dated June 2009. Mr Aylward consents to the inclusion in this Presentation of the matters
based on his information in the form and context in which it appears.
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION
2 KODAL SNAPSHOT
Bernard Aylward – Chief Executive Officer
Geologist and Manager who has over 20 years experience across West Africa, Australia and
WEST AFRICA FOCUSED Europe. Bernard has relevant extensive experience in West Africa project acquisition, exploration
Substantial footprint in the highly prospective lithium and development. He was a founding Director of ASX listed Taruga Gold Limited and has been
instrumental in Kodal’s acquisition of the International Goldfields (Bermuda) Limited projects.
province of Mali and additional gold exploration
properties in Mali & Côte d’Ivoire
Steven Zaninovich – Project Manager
Over 25 years in project development, maintenance and operational readiness in the mining
ACCELERATED DEVELOPMENT industry including, most recently, as Project Director of Tawana Resources Ltd, responsible for the
A defined development plan to complete ESIA and delivery of the Bald Hill Lithium Project. Prior to that, he served as COO with Gryphon Minerals
Mining Licence application before assuming the role of Vice President of Major Projects, and becoming part of the Executive
Management Team, at Teranga Gold Corporation.
LITHIUM PROJECT Robert Wooldridge – Chairman
Advanced Bougouni Lithium project in southern Mali and Extensive Corporate Finance experience including completing a number of landmark equity
recent acquisition of Bougouni West project to transactions across Europe, India and the Middle East & Africa. Robert is currently a partner at SP
Angel (founding partner),an independent corporate finance and broking operation which focuses
complement long term future on advising small and mid cap companies in the mining, oil and gas and technology sectors.
PROVEN TEAM Luke Bryan – Chief Technical Officer
Active & experienced management team with ability to Luke is a mining engineer with over 20 years of international experience throughout Africa,
Australia, the Former Soviet Union and Europe. Luke holds degrees in Mining Engineering and
ensure continued successful implementation of strategy Economics from Auckland University.
Dr Qingtao Zeng – Non-Executive Director
STRATEGIC INVESTOR & OFFTAKE Dr Zeng completed a PhD in geology at the University of Western Australia in 2013. Qingtao has
been extensively involved in the lithium exploration and development sector and through his
Highly supportive strategic investor and offtake network of contacts throughout China has helped clients complete a range of contracts relating to
partner secured to underpin development the supply or purchase of lithium.
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION
3 BOUGOUNI LITHIUM PROJECT
DELIVERED:
5 SEPTEMBER 2018
DELIVERED:
5 SEPTEMBER 2018
COMPLETION:
Q4 2018
TARGET:
Q1 2019
TARGET:
H1 2019
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION
4 BOUGOUNI LITHIUM PROJECT
MULTIPLE HIGH-GRADE TARGETS
BOUGOUNI LITHIUM
PROJECT
• Seven prospects drill tested, all of which PROSPECT MAP
demonstrated lithium mineralisation –
over 35,000m drilled
• High-grade lithium mineralisation
identified at three advanced projects –
Ngoualana, Sogola-Baoule and Boumou
• Geology: wide zones of pegmatite
mineralisation, outcropping, or from
near surface
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION5 UPDATED JORC MINERAL RESOURCE
• JORC Mineral Resource of 21.3Mt at 1.11% Li2O, with 11.6Mt at 1.13% Li2O in the Indicated category and 9.7Mt at
1.08% Li2O in the Inferred category, placing the Bougouni project in the top 15 hard rock lithium projects globally
• Updated Mineral Resource comprised of three most advanced prospects (from the eight currently defined targets):
• Sogola-Baoule: 12.2Mt at 1.1% Li2O (18% increase) – 69% categorised as Indicated;
• Ngoualana: 5.1Mt at 1.2% Li2O (9% increase) – 61% categorised as Indicated;
• Boumou: 4Mt at 1.02% Li2O (81% increase) – remains Inferred
(Mineral Resource reported using a 0.5% Li2O lower cut-off, no top cut-off and is based on the wireframe interpretation of mineralised pegmatites)
• Exploration and definition drilling for resource expansion and continued testing of new target areas is underway
• The updated Mineral Resource represents a 23% increase in the previously reported Mineral Resource of 17.3Mt
and includes 55% in the Indicated category
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION6 OPEN PIT OPTIMISATION
SOGOLA-BAOULE Preliminary open pit optimisation studies indicate a
minimum 10-year mine life utilising a 1Mtpa
processing plant producing approximately 130,000
tonnes of concentrate per annum
NGOUALANA
RED = INTERPRETED MINERALISATION
BROWN = OPTIMISED PIT SHELL
Mineralisation captured within conceptual open pits
totals 13.2Mt at 1.2% Li2O, with mineralisation
remaining open along strike and beneath the
RED = INTERPRETED MINERALISATION
conceptual open pits BROWN = OPTIMISED PIT SHELL
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION7 BOUGOUNI LITHIUM PROJECT
METALLURGY AND BULK SAMPLE
• Metallurgical testwork conducted in China and ongoing in Perth, Australia
• Bulk sample of 980 tonnes of lithium spodumene currently at Dakar Port being shipped for ‘Pilot Scale’ test
by off taker in China
• Testing is focused on the DMS separation to produce a spodumene concentrate
• Pegmatite at Bougouni is characterised by coarse grained mineralisation with ability to produce a high-
grade concentrate
• Initial testwork is indicating high recoveries (+60%) via DMS separation
• 6% lithium concentrate sample processed in China and produced a premium battery grade carbonate
product with low impurities:
Element Li2CO3 Na Mg Ca K Fe
Analysis 99.52% 0.020% 0.0003% 0.0031% 99.5%8 PRELIMINARY ENGINEERING STUDY
• Internal desktop studies indicate an order of
magnitude ‘all-in’ capital cost of circa US$70m for
a 1.5Mtpa processing facility
• Cost includes a crushing circuit, DMS processing
plant, mine establishment and pre-strip,
associated infrastructure and services, working
capital and contingencies
• Consultants have been engaged to complete a
feasibility study on this basis, with the objective
of producing the necessary study documentation
that will facilitate submission of a mining licence
application in H2 2019
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION9 EXPLORATION AND DEVELOPMENT TIMELINE
ESIA Complete and Submitted – anticipated shortly
Completion of Metallurgical Studies – July 2019
Completion of Open Pit Mine design and Plant Infrastructure
Engineering – July 2019
Mining Licence Application Lodged – H2 2019
Begin Mine Construction
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION10 PEER COMPARISON
LITHIUM CARBONATE EQUIVALENT
Contained Li2O Lithium Contained LCE
Operator Status Project Location Li2O Resource (mt) ('000t) Metal ('000t)
Albemarle / Tianqi Operating Greenbushes1 Australia 2.40% 120 2,880 1,338 7,120
Kidman Resources Development Earl Grey 2018 MRE Australia 1.50% 189 2,843 1,320 7,030
Rio Tinto Exploration Jadar Serbia 1.86% 136 2,530 1,175 6,256
Pilbara Minerals Development Pilgangoora (PLS) Australia 1.25% 156 1,950 906 4,822
Mineral Resources Operating Wodgina Australia 1.28% 121 1,549 719 3,830
Neometals / Ganfeng / Mineral Resources Operating Mt Marion Australia 1.37% 78 1,069 497 2,643
Nemaska Lithium Development Whabouchi Canada 1.48% 37 548 255 1,354
Critical Elements Exploration Rose Canada 1.25% 37 463 215 1,144
Altura Mining Development Pilgangoora (AJM) Australia 1.06% 40 424 197 1,049
Birimian Exploration Goulamina Mali 1.34% 103 398 185 983
Jilin Jien Elements Exploration Quebec Lithium Canada 1.19% 33 393 183 971
Prospect Resources Exploration Arcadia Zimbabwe 1.42% 23 327 152 808
Kodal Minerals Exploration Bougouni Mali 1.11% 21.3 236.5 110 584
Alliance Mineral Assets Ltd Operating Bald Hill Mine Australia 1.0% 26.5
Galaxy Resources Operating Mt Cattlin Australia 1.08% 16 173 80 427
Dakota Minerals Exploration Sepeda Portugal 1.00% 10 100 46 247
Sayona Mining Exploration Authier Canada 0.96% 9 88 41 217
AMG Exploration Mibra Brazil 0.35% 19 67 31 164
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION11 ELECTRIC VEHICLE BOOM
CHANGING WORLD: DRIVEN BY PERSONAL DEMAND AND TECHNICAL ADVANCEMENT
• EV momentum continues with China leading the way –
Chinese monthly EV car sales surged to close out 2017*
• The United Nations Climate Change Conference
reaffirmed that all cars and vans would be zero-emission
by 2050
• Huge growth in the number of EVs on the road from
manufacturers such as Tesla, BMW and Mitsubishi
• By 2040, EVs could account for 51% of all vehicles sold
globally
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION12 INVESTMENT SUMMARY
High demand commodity with international interest
Strategic location and top 15 resource globally
Highly competent and dedicated team
Mine Development and Exploration continuing in parallel
Well funded - £6 million investment from strategic investor
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATION13 APPENDIX: UPDATED MINERAL RESOURCE TABLE
Indicated Inferred Total
Prospect Contained Contained Contained
Tonnes Li2O% Tonnes Li2O% Tonnes Li2O%
Li2O Li2O Li2O
(Mt) Grade (Mt) Grade (Mt) Grade
(kt) (kt) (kt)
Sogola Baoule 8.4 1.09 91.9 3.8 1.13 42.8 12.2 1.10 134.8
Ngoualana 3.1 1.25 39.2 2.0 1.12 22.1 5.1 1.20 61.3
Boumou 4.0 1.02 40.4 4.0 1.02 40.4
TOTAL 11.6 1.13 131.2 9.7 1.08 105.3 21.3 1.11 236.5
CORPORATE PRESENTATION | JULY 2019 INVESTOR PRESENTATIONCONTACTS BERNARD AYLWARD | CHIEF EXECUTIVE OFFICER E: BERNARD@KODALMINERALS.COM SP ANGEL | BROKER E: RICHARD.PARLONS@SPANGEL.CO.UK ST BRIDES PARTNERS | FINANCIAL PR & IR E: CATHERINE@STBRIDESPARTNERS.CO.UK E: COSIMA@STBRIDESPARTNERS.CO.UK
You can also read
